How is DP World Getting Customers to Move from Road to Rail?

DP World is stepping up its efforts to move its customers from road to rail and drive down Scope 3 emissions by offering them £100 to do so.

The Dubai-based company, a leading provider of global end-to-end supply chain solutions, is increasing its financial incentive from £70 per container for customers taking advantage of its Modal Shift Programme.

The scheme was introduced in September last year and is designed to increase the attractiveness of intermodal rail for customers.

The Modal Shift Programme is being trialled at DP World Southampton, UK, for 12 months and offers £100 per applicable container to customers who move import-laden containers via rail to a railhead within 140 miles of the Southampton logistics hub.

How will the scheme help?

DP World says the programme “has the potential to prevent an estimated 30,000 metric tonnes of carbon dioxide being emitted per year”.

The figure is more than three times the total emissions of DP World’s logistics hub at Southampton, making it a good example of a project targeting Scope 3 emissions, which are not directly controlled by a company.

DP World says it is encouraging supply chain partners to “explore, trial and transition to rail as a lower carbon alternative for their UK supply chains”.

It adds that early indications show that up to 4,000 tonnes of CO2 have been mitigated so far through the increase in rail usage.

Pressure has never been greater

John Trenchard, UK Commercial & Supply Chain Director at DP World, said: “We are delighted with the Modal Shift Programme’s success so far.

“The increase in incentive will provide our customers with a welcome boost to their financial and sustainability ambitions and further support the UK Government’s ambitions to achieve a 75% growth in freight carried by rail by 2050.

“This is particularly important at a time when the pressure to manage costs, maintain reliability and improve speed has never been greater for our customers.”

John added: “The programme is also a testament to our growing cooperation with the market, as we continue to seek to provide customers with lower carbon choices and encourage modal shift for supply chains using our UK logistics hubs.

“To put that in perspective, our investment in British rail alone via our two UK hubs is taking approximately 300,000 trucks off the road each year.”

DP World said, since the announcement of the Modal Shift Programme, rail services uptake at Southampton have increased from 21% to 27%.

This has been helped by the reintroduction of a daily rail service from Southampton to South Wales, along with the implementation of final mile deliveries using electric vehicles.

About Southampton Port

Southampton Port was officially established as a commercial port in the early 19th century, growing rapidly due to its strategic location and deep waters.

It became a key hub for transatlantic trade and passenger liners, including the ill-fated RMS Titanic, which sailed from Southampton in 1912.

Today, the port is owned and operated by DP World Ports & Terminals UK and plays a vital role in global trade.

It is one of the UK’s leading ports for vehicle exports, handling around 900,000 vehicles annually.

It is the UK’s busiest cruise ship terminal, with millions of passengers passing through annually.

The port handles over 34 million tonnes of cargo each year, including containers, bulk goods and specialised cargo.

DP World recently acquired Associated British Ports' (ABP) 49% stake in the operating company in a deal that extended its operating licence until 2047. ABP had owned and operated the port since 1982.

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